What is the proper cash flow

Assignment Help Finance Basics
Reference no: EM132491116

a. Quick Computing currently sells 7 million computer chips each year at a price of $12 per chip. It is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $15 each. However, demand for the old chip will decrease, and sales of the old chip are expected to fall to 1 million per year. The old chips cost $6 each to manufacture, and the new ones will cost $10 each. What is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (Enter your answer in millions.)

b. Tubby Toys estimates that its new line of rubber ducks will generate sales of $6.60 million, operating costs of $3.60 million, and a depreciation expense of $0.60 million. If the tax rate is 30%, what is the firm's operating cash flow? (Do not round your intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

Reference no: EM132491116

Questions Cloud

Discuss patriarchy and its roots throughout history : Discuss the Symbolic Interactionist Perspective on gender and gender roles in our society. If you could temporarily be the other gender, how long would you like
Discusses two primary classes bourgeoisie and proletariat : Discusses two primary classes bourgeoisie and proletariat. What are some of the conflicts between the two primary classes? Last, how does this influence society
Determine what is already known about the topic : The literature review is the part of the research report in which researchers evaluate the methods and findings of existing research related to that topic.
React to organisational and cultural changes : React to organisational and cultural changes and your current level of self-awareness and self- confidence to lead others in your organisation and/or community
What is the proper cash flow : What is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (Enter your answer in millions.)
Describe social scientists as a hyphenated : The term "Asian American" is what social scientists describe as a hyphenated identity, including the adjective modifier "Asian" to the noun "American."
What research says professionalsshould do instead : The way that we speak to elders matters. Researchers have found that many professionals and family members use "elderspeak" when they communicate with elders.
How the immigration or minority status of children affect : Researching how the immigration or minority status of children and their families affects how they perceive authority figures in the United States
Discuss methods of implementing evidence-based agency : Briefly discuss and suggest to methods of implementing evidence-based practices in the agency. Analyze the findings from the articles you researched

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the amount of the last dividend this company paid

Lamey Headstones increases its annual dividend by 1.5 percent annually. The stock sells for $28.40 a share at a required return of 14 percent. What is the amount of the last dividend this company paid?

  Integrated program management report

Given this cumulative data, taken from the Integrated Program Management Report, what is the estimate at completion (EAC), using the cost performance index (CPI) as the performance factor for the Cooling System Work Breakdown Structure (WBS) eleme..

  Compute the percentage total return

Compute the percentage total return, capital gains yield, and dividend yield.

  How many ounces were started and completed during the period

Units to be Assigned Costs Rocky Springs Beverage Company consists of two departments, Blending and Filling. The Filling Department received 68,600 ounces.

  Capital market and information efficiency

develop your ability to research issues impacting the sustainability and efficiencies of the financial markets and make connections between the concepts

  What is wrong with given analysis

This researcher then concluded that divorce is bad for children's test outcomes.- What is wrong with this analysis?

  Impact tesla financial position

A year ago, that figure was $780 million. Explain how Mr. Musk's request for "donations" would impact Tesla's financial position.

  What could be the maximum payment to the preferred

Kuhns Corp. has 200,000 shares of preferred stock outstanding that is cumulative. The dividend is $3.00 per share and has not been paid for 3 years. If Kuhns earned $1 million this year, what could be the maximum payment to the preferred stockhold..

  The evanec companys next expected dividend is 302 its

the evanec companys next expected dividend is 3.02 its growth rate is 5.04 its common stock now sells for 35.05. new

  Question 1joe just inherited the family business and having

question 1joe just inherited the family business and having no desire to run the family business he has decided to sell

  Vsit the website of yahoo httpfinanceyahoocom and collect

visit the website of yahoo httpfinance.yahoo.com and collect information about nokia including the recent stock price

  Discuss empowerment and empowerment theory

Discuss Empowerment and Empowerment Theory, The Strengths Perspective, and Resiliency and why this focus is a vital concept in the Generalist Practice.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd